You have been hired by Seeser Flappits Company to prepare its cash flow statement. The company provides
Question:
You have been hired by Seeser Flappits Company to prepare its cash flow statement. The company provides you with its 2000 income statement as follows:
SAlOS SoA ocassnseansenetuescaserbessesesisnnssesennsnsneteteeeteae tease teoeetea eae $56,400 Costi Of! gO0dS: SOld......:5:28e tte asgeestaesstoaasttettetonesoeeeaseneet tea staeeeee (31,400)
GIFOSS) PROFIL sive asssncvaesstavesvertavvseevertvorenenirbinstceaetoeeesarsee meet ttt ener $25,000 Salari€S OXPEMNSe cncscccvcsscsscsessctsvevsseeaversscsess Depreciation expense Other expenses (all cash)... 1,000 Total Operating ExPeMsess .......:...secovsssconveovectecuececsetsvarecusecernescus (23,000)
INGGHlriCOn rie: Ea. RAR eee eccessutctescevvscacsassctereteeneeenete act ened $ 2,000 You determine that these numbers are correct. You review the company’s 2000 beginning and ending balance sheets and find that the cash balance was $1,800 on January |, 2000, and $4,700 on December 31, 2000. In addition, you find the following changes:
Accounts receivable $4,100 decrease Inventory 5,600 decrease Accounts payable 2,500 decrease Salaries payable 1,200 increase Furthermore, you determine that during 2000, the company sold equipment for $4,800, purchased land for $13,000, and issued a note payable for $7,500, all for cash. The owner also withdrew $9,600. After all these changes, the company had average total assets of
$74,000 for 2000.
Required: (1) Using your findings, prepare the company’s 2000 cash flow statement.
(2) Compute the company’s 2000 cash return on total assets. plo47
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780030224294
1st Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley